Taipei, May 31 (CNA) Chao Teng-hsiung, chairman of Farglory Group, was released on bail Saturday after being questioned overnight over allegations that he bribed a local government official in connection with a development project in Taoyuan County.

Bail was posted at NT$5 million (US$166,500) and Chao is barred from traveling overseas pending further court proceedings.

The Taipei District Court released Chao despite a request by prosecutors to have him and three other suspects in the case detained to prevent collusion.

The official, Deputy County Magistrate Yeh Shih-wen, was ordered detained and held incommunicado earlier Saturday by the court for allegedly taking bribes from Chao, one of Taiwan's most successful real estate tycoons.

Chao denied the allegations, according to investigators. In addition to Yeh, Tsai Jen-hui, another suspect in the case, was also detained. Tsai, a former college professor, was accused of acting as an intermediary between Chan and Yeh.

The three, along with another senior Farglory executive, were summoned as suspects by the prosecutors' office Friday after searches were conducted in Yeh's office and residence and Farglory's headquarters in Taipei.

Yeh is suspected of having received bribes of more than NT$18 million (US$600,000) from Farglory to help the company win a housing project bid at NT$1.3 billion in Taoyuan in April.

Yeh, 66, was dismissed Friday afternoon from his position with immediate effect by Taoyuan Magistrate Wu Shih-yang, who said he was shocked and angry after learning about the corruption allegation involving a high-ranking county official. (By Liu Shi-yi and Jay Chen)